The legislation, over time, may help stabilize the market but over the next 18-24 months, eligibility and affordability will continue to be an issue.
We can, as an industry, make profits under the law if we raise rates enough and the filings during the first six months of the year were tempered by the prospect that SB76 would provide the relief the market demanded and now that it has fallen short, the reinsurance filings will need to make up part of the shortfall and additional rate requests need to follow.
Anyone who thought that the industry would get everything they were asking for is a fool. I surely hope their actuaries weren’t relying on having their cake and eating it too.
This is one small step to curbing the insanity. As such it should stop the bleeding a bit.
The legislation, over time, may help stabilize the market but over the next 18-24 months, eligibility and affordability will continue to be an issue.
We can, as an industry, make profits under the law if we raise rates enough and the filings during the first six months of the year were tempered by the prospect that SB76 would provide the relief the market demanded and now that it has fallen short, the reinsurance filings will need to make up part of the shortfall and additional rate requests need to follow.
Anyone who thought that the industry would get everything they were asking for is a fool. I surely hope their actuaries weren’t relying on having their cake and eating it too.
This is one small step to curbing the insanity. As such it should stop the bleeding a bit.
Shakespeare said it best. Something to do with lawyers.